QC reduces tax for micro business

The Quezon City government in its desire to support the development of micro enterprises in the city is now pushing for the full implementation of the BMBE Act (Barangay Micro-Business Enterprises and RA1978).

Nathan Zulueta, consultant to the office of the city mayor said by virtue of Ordinance 1576 approved by Mayor Feliciano Belmonte, Jr. the amount of local business taxes imposed on the accredited BMBE shall be one-half of the rates prescribed by the Quezon City Revenue Code of 1993 as amended.

“The City Ordinance also reduces the administrative cost of filing BMBE accreditation from P1,000 to P100.

The QC twin measure is another first in the history of BMBEs implementation.

A few years back, Quezon City was also the very first LGU to implement the said law” Zulueta said.

The city government under the stewardship of Belmonte will focus in encouraging the development of small scale businesses and in supporting livelihood initiatives by giving them tax perks and other non-fiscal incentives. The policy direction now is to empower small-scale businesses.

“In Quezon City, we don’t only look after the welfare of the big investors or enterprises. The business-friendly policy of the city government also includes support for the micro enterprises,” Zulueta said.

Small-scale businesses are essential to the country’s economic growth and development.” We would like to invite and integrate the operations of the informal sector to the mainstream to help create more jobs and livelihood for everyone,” the mayor said. Director Rhodora Leano of DTI-BSMED, the lead national government agency implementing BMBE, upon learning of the QC’s ordinance 1576 commended the Quezon City government and the administration of Mayor Belmonte for its unprecedented measure to enhance further the implementation of the BMBE. Strengthening BMBE could mean more jobs and better quality of life for Filipinos.

“We hope other LGUs will follow and emulate the program of Quezon City by passing their own local ordinance reducing by 50 percent local taxes for BMBEs,” she said.

Quezon City Treasurer Victor Endriga, whose office is mandated to accept and implement the BMBE Act said, “Micro business enterprises should avail of the tax incentives being offered by the city government. Once accredited they will enjoy 50 percent discount in city business taxes for two years and renewable for another two years as long as they are still qualified.

“All they have to do is apply for accreditation. This is our way of helping micro enterprises in the city in their operations,” she also said.

BMBE as defined is a business enterprises engaged in the process or manufacturing of products, trading and service operations with assets below P3 million excluding land.

Zulueta, who is also Quezon City Chamber of Commerce and Industry (QCCCI Foundation) president and lead implementor now of BMBE said that once an enterprise is accredited, a member will enjoy the following perks: Two years income tax exemption; exemption from minimum wage law coverage; financial support; technical support in distribution and production; 50 percent discounts in local taxes and fees.

“Micro enterprises in the city are invited to coordinate with our office (QCCCI Foundation and 3714519 and 3714575) and see if they are qualified to enrol in the program. OFWs, retirees, professionals, cooperatives and those who want to put up business are encouraged to coordinate with QCCCIF,” she said.

Enterprises experiencing business setbacks or those who belong to the underground economy and would want to legalize their operation are all welcome to join.

The tax perks and non-fiscal come-ons will be very helpful to them. BMBE was designed, created, enacted and passed to spur the growth of micro enterprises. So don’t waste it. Enrol now and be accredited” Zulueta said. – Perseus Echeminada